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some quid pro quo from the Japanese, perhaps in the form of lowered tariffs on wider forms of British marine equipment, such as Radars etc., which could be fully competitive.
6.
If, as we hope, Dept. of Trade Ministers accept the recom- mendations of their officials, they will be sending a telegram to you together with the full report so that you can comment and make up your own minds. Clearly in assessing the weight that will then be given to the residual objections of the Unions in this country, much will depend on the probable size of the Register. A comment from here would be, therefore, that if Hong Kong owners do in the end intend to put a significant number of ships on the register as now proposed, they would perhaps be wise not to hold back a firm commitment much longer.
If, as you suggest, their reaction is wholly negative, we shall at least know where we stand.
7.
Meanwhile, since I have to some extent jumped the gun in describing what the Dept. of Trade are likely to do, I would be grateful if this letter could be given no inessential circulation.
сс
(blind)
Mr Youde Sir D. Watson
Yours cvet,
Arlaced
A C Stuart
Hong Kong & Indian Ocean Dept.
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